2020 and 2021 shook up the entire global economy in a multitude of ways. Economic competition is on display as being absolutely unfettered, and remains one of the key modern battlefronts of nation-states (particularly relevant in today's Ukraine-Russia war crisis). Necessarily rising interest rates beginning in 2022 in the US will make it so that returns will increasingly require real economic value creation. However, despite the daunting cornucopia of factors influencing modern business, positivity remains in the US! Small business starts are seeing record numbers as individuals remain hopeful for control over their economic destinies.
That said, growth is no longer a given. Key insights will need to be paired successfully to winning strategies in order to create technological advantages for businesses that will remain over time and be difficult to displace. Insights from my last year that have caught my eye for business owners are:
1. Accelerated adoption of digital....everything
Digital assets, workflows, experiences, healthcare - the world has spent more time online seeking connections in spite of the isolation caused by the COVID Pandemic and it is as difficult as it's ever been for business owners to not be digitally native. (see my client's response to this @ www.saigonbistrotexas.com). Business operations will continue to rely increasingly on digital and cloud enabled tools from sales to procurement, fulfillment to accounting, and all things in-between. Even the funding landscape is being disrupted by the proliferation of online services - previously a deeply in-person and trust based industry, cryptocurrencies, DAOs, and various syndication service platforms are decentralizing and empowering individuals. Connection is everywhere and deepening, as long as we avoid falling into the trap of connections which don't facilitate growth and instead take from our efforts.
2. The New Global Macroeconomic Context
Ray Dalio's book is one of the most effective ways to quickly pull forth a quantitative, historically rich and well researched global macroeconomic context into your life. It is an absolutely critical element for all business owners to understand, that their next 10,20,30 years of operation will continue to see radical changes by inflation, globalized competition, and their underlying drivers. The world will continue to march forward and we must continually adapt our strategies with the best vision of what is to come. The most immediate concern that weighs for US operators is the dirty I-word...Inflation. Long story short, a ravenous desire to turn existing cash into cash flowing assets should be a top priority (ask me about my automated ecommerce partners)
3. The Best Leaders Leave Behind a Great Legacy
For those who know me personally - Rugby has been a big factor in my life. The physical challenge shaped my resilience and mindset. The constant workrate and team scrummage towards victory require excellence from every person at all times against high-level competition (otherwise you lose). This year I came across James Kerr's book - Legacy. It contains his distilled lessons about the world's most elite sporting team, the New Zealand All Blacks who have prevailed over time against the fiercest of challengers with statistically stunning success. The organizational excellence and culture required to achieve this will be required of companies looking to have the best human capital as we continue to proceed in to the hyper competitive digital talent world of 2022 and beyond. A few of my favorite takeaways include:
Sweeping the Sheds - leaders must never be too big to do the small things
Go for the Gap - always pursue the next opportunity, don't be stagnant
Create a Learning Environment - leaders must be teachers
Keep a Blue Head - control your team's attention for success
Be a Good Ancestor - planting trees you'll never see
4. We Are All Entangled
Nature continues to demonstrate the deeply intertwined nature between humans and our environments - shared with a multitude of other living organisms who impact us (and us impacting them!). The pandemic has cast light on the wisdom that 'No man is an island'. Merlin Sheldrake's book - Entangled Life gives even deeper insight along these lines into how seemingly inconsequential mycorrhizal fungi represent a fascinating form of intelligence, and have dramatic environmental resource impacts. If humans as a species take the time and effort to further study the life around us, we will continue to uncover secrets which will advance our understanding of our world. We are more connected to one another and the Earth than we realize, and to be good stewards will only drive true value, and ultimately business growth.
I hope you are able to take these 4 insights with you as helpful going into 2022 and beyond. Please share your love to your friends, family, and colleagues and live every day to its fullest. If you are interested in partnering to harness any of the above in your business growth journey please inquire with me at: svallagomesa@grexcollc.com
-Sam Vallagomesa
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